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4 CWAG | January 31, 2013 Visa is Not… NOT just a “credit card company” We process transactions across a variety of products. In fact, for the four quarters ended June 30, 2010, the majority of global payments transactions on Visa’s network were on debit products. NOT an issuer The transactions that run over our network — debit, credit, prepaid and money transfers — are on products issued by our financial institution clients directly to cardholders. NOT a bank or lender Visa does not issue cards, set cardholder rates, extend credit or send solicitations to consumers. Card rates, fees and cardholder relationships are exclusively the responsibility of the issuing financial institution.

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6 CWAG | January 31, 2013 Closed-Loop vs. Open-Loop Prepaid Cards Two basic types of prepaid cards are available. The main difference is where and how the card can be used Also known in the industry as Network Branded prepaid cards display the logo of the brand (e.g. AMEX, Discover, MasterCard and Visa) Issued by highly regulated Financial Institutions (BSA requirements, OFAC, AML, etc.) Can be used at multiple merchant locations, generally wherever network brand is accepted Various types of prepaid products and based on the type offer POS and/or cash access May be non-reloadable or reloadable; personalized or non-personalized Closed-Loop Open-Loop Issued by a single merchant Financial Institution is not involved (no BSA, AML requirements required today) Non-personalized, pre-denominated dollar amount Value associated with card is only redeemable at retailer for goods or services they sell (POS only, no cash access) Tend to be non-reloadable and gift cards

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8 CWAG | January 31, 2013 Visa Prepaid Cards Are Issued by Financial Institutions All Visa prepaid cards issued in the U.S. are issued by banks, all U.S. banks are subject to the Bank Secrecy Act (“BSA”), and all U.S. banks are examined by federal and/or state banking agencies for compliance with the BSA. Unlike stored value card products, no funds are actually stored on the cards. Rather, like debit cards, which are exempted from FinCEN’s proposed rule on cross-border reporting requirements, 1 all funds associated with Visa prepaid cards are held in accounts or subaccounts at the issuing bank, 76 Fed. Reg. 64,049 (Oct. 17, 2011). All Visa prepaid cards are structured so that the underlying funds are treated as “deposits” for purposes of Federal Deposit Insurance Corporation (“FDIC”) deposit insurance. To secure this deposit insurance coverage, issuing banks are required to collect identification information on the owner of the funds. Regardless of whether an issuing bank holds the underlying prepaid funds in an “account” or in a “subaccount,” the issuing bank is obligated to know its customer. Therefore, there is no customer anonymity with respect to prepaid cards if those cards can be reloaded or used for access to cash. 1 76 Fed. Reg. 64,049 (Oct. 17, 2011).

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9 CWAG | January 31, 2013 4|4| Visa Prepaid Program Controls Global Prepaid Controls and Rules Registration – Financial Institutions must submit and obtain approval for all Visa prepaid programs via a PIF (prepaid information form) Load Limit - $1,000 maximum if cardholder is not known or has not passed KYC KYC – Required for cash access and reloads*; Otherwise only good for purchases Cross-Border Access – Restricted on majority of U.S. non-reloadable cards (and therefore only usable within country of issuance) Reselling Cards- Visa does not allow cards to be resold (e.g. websites) Unique BINs & Product Identifiers – Ability to report and monitor by product type (gift, general purpose, government, etc.) Onsite Reviews – U.S. Prepaid Issuer Risk Program Since 2006, Visa conducts onsite/offsite reviews to ensure FIs have appropriate controls in place with their third-party agents (e.g. program managers) * Exceptions exist and are allowed where local country laws differ; Variance for reloads without KYC have been allowed in the transit segment but cash and cross-border access is restricted

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10 CWAG | January 31, 2013 U.S. Issued Visa Prepaid Card Statistics International Cash Access / Usage Source: VisaNet, CY2012 ; US territories included as International volume Statistics are inclusive of all Visa prepaid cards including Visa TravelMoney that is designed for travel 98.64% of total prepaid volume (POS & Cash) takes place in the U.S. 97.92% of all total prepaid cash volume takes place in the U.S. CY 2012, the top four countries where cash was accessed from U.S. issued prepaid cards: Mexico, Puerto Rico, Russia, United Kingdom − 65% of the cash usage in Mexico and Puerto Rico is initiated by government disbursement prepaid cards CY 2009-2011 trends show that cash access by U.S. issued cards used outside of the U.S. has stayed relatively flat (-1%), as volume of cards has increased approx. 15% (CAGR)

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11 CWAG | January 31, 2013 Continued Efforts Since 2009, Visa has met with various law enforcement groups within Department of Homeland Security (ICE, Border Patrol, etc.) to understand law enforcements questions and concerns regarding prepaid cards Early 2012, Visa issued first law enforcement newsletter about prepaid cards. Working in conjunction with ICE to develop training for field agents Regular dialogue between law enforcement and industry is critical to ensure products are not being misused and appropriate level of regulation is in place

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